Philippines 'quite insulated' from Trump: HSBC

ABS-CBN News

Posted at Jan 23 2017 10:51 AM

US President Donald Trump reacts as he leaves with Vice President Mike Pence (L) after attending a swearing in ceremony for senior staff at the White House in Washington, DC January 22, 2017. Carlos Barria, Reuters

MANILA – A strong domestic economy will largely shield the Philippines from US President Donald Trump’s protectionist policies, an economist said Monday.

Trump’s immigration crackdown is unlikely to dent remittances as most Filipinos in the US are permanent residents. The new US leader’s drive to bring jobs back to America will likely affect electronics manufacturing more than business process outsourcing, said Joseph Incalcatera, an economist at HSBC in Hong Kong.

“The fact of the matter is, the Philippines remains to be quite insulated from any type of economic policy in the US, particularly trade policy,” Incalcatera told ANC’s “Market Edge with Cathy Yang.”

With growth driven by fiscal stimulus and President Rodrigo Duterte’s infrastructure spending program, Incalcatera said the Philippines could “withstand” Trump’s policies.